G20 Agrees On Coordinated Approach To Regulate Crypto: FM Sitharaman

During India's presidency of the G20, a "synthesis paper" on crypto assets will be discussed.

Sitharaman emphasised that the discussion with other nations was very substantive.

According to Union Finance Minister Nirmala Sitharaman, the G20 agrees that a coordinated global approach is necessary to regulate and address the challenges posed by cryptocurrency. During India's presidency of the G20, a "synthesis paper" on crypto assets will be discussed. Sitharaman stated that there is a greater acceptance among G20 members that any action taken on crypto assets must be global.

At a meeting of finance ministers and central bank governors from G20 member countries in Washington, DC, US, issues related to cryptocurrency were discussed. Sitharaman stated that the G20 and its members agree that regulating crypto assets cannot be the responsibility of an independent standalone country and that a globally coordinated understanding is necessary.

The IMF's paper on the topic is being discussed, as well as the Financial Stability Board's (FSB) paper, and a synthesis paper will be prepared from both. In September and October, there will be further discussions, and a roadmap will be created on what kind of understanding the G20 members have on this issue.

Sitharaman noted that the work done by the FSB and the IMF indicate that cryptocurrency, particularly those not backed by any sovereign asset and outside of central banks, can cause macroeconomic instability. She also mentioned that European Central Bank chief Christine Lagarde gave specific examples of how money has been routed into cryptocurrency operations, leading to an increase in the number of companies involved in these operations and raising questions about where the trail leads.

Sitharaman emphasised that the discussion was very substantive and that the G20 members agreed that global action is necessary to address this issue. She stated, "Yes, it has got to be globally handled."

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